Transcripts For CNBC Power Lunch 20170911

Welcome to power lunch the s p joining the dow in having its best day since march 1st. The three major averages now positive for the month all 11 s p sectors are trading higher right now health care, tech, trading above their record closes. Financial also a big winner today. The dow utility setting an alltime intraday high as melissa mentioned, irma, not as bad as it could have been the floridabased insurers and the reinsurers, they are soaring, up anywhere between 5 and 15 . Im Brian Sullivan out in San Francisco. Perhaps no stock important for the dow as much as apple tomorrow, apple, the first event at their brandnew billion dollar headquarters. Expected to launch not one, not two but perhaps three new phones with a price tag of upwards of 1,000 Analysts Expect this to be revolutionary. Not evolutionary the stock has becoen on a tear well get you details perhaps on apple watch, apple tv. Its all going to be about this device, the computer in your hand, ten years after the release of the first one this show, were going to have a couple different previews. Tell you what to expect. What Analysts Expect theres a lot more to do here open the weon the west coast. Lets get you caught up on the continuing story that is irma it has now been downgraded to a Tropical Storm but jacksonville is front and center right now then georgia later today, then up through eastern alabama early tomorrow right now, more than 6 Million People are without power in florida and about 100,000 have lost power in georgia. Miami International Airport set to reopen tomorrow limited schedule there weve got our team spread across the region covering the aftermath and the massive economic toll. The storm is taking on florida and beyond Contessa Brewer is in miami. Looking at the impact irma may have on floridas Tourism Business diana at home depots command center in atlanta focusing on logistics and what it is going to take to get lumber, material and people to and from the impact zones and Steve Liesman here at headquarters diving into the cost to the economy of both irma and harvey that number climbing by the minute lets begin with contessa. Contessa nice to talk to you today the hotels and restaurants in this tourist hot spot in miami are out assessing the damage today, trying to figure out how much wind damage they have, how much water damage they have from the surge and how much business theyre losing because of power outages. Lets take a look at the port now. Port of miami, important for cruise ships coming and going. Weve just had an update from norwegian escape saying they have a ship heading towards miami with 4,000 passengers on board at capacity. A lot of these were displaced passengers from other ships. Its leaving cozumel at 5 00 p. M. Tonight carnivals paradise is also leaving cozumel this afternoon the problem is, the port is closed everglades port is closed. Port canaveral, port of tampa, all closed no set time for reopening. Of course irma caused a lot of these cruise ships to change their itineraries. The majesty of the seas cruise ship is going now to help with rescue and relief efforts in the caribbean so theyve canceled their majesty of the seas cruise there. Theme parks in atlanta p orla so weve had an update from universal parks. Theyre closed today and have been throughout the weekend. They anticipate reopening tomorrow they say that their onsite hotels are filled to capacity. Theyre up and running theyre catering to guests disney, the situation is much the same theyre out assessing the wind, the rain damage that theyve had. Disney had power throughout the storm. They say that they think they can be up and open again tomorrow as for the flights, tyler, you mentioned it, at the top, miami airport anticipates reopening tomorrow with limited service. They had a lot of damage water coming in from the jet bridges and through the roof leaking. They had five terminals with significant water cage ft. Lauderdale airport says it will reopen tomorrow at 4 00 a. M. There are some 9,000 flights in florida that have been canceled. You can imagine the problems that creates for tourists who decided to ride it out i met some of them on way down they were going to orlando because it cost them 2,000 euro to get here. Tourism for florida is a Huge Industry it was worth 101 billion last year so getting back up and running, you know, time is money. What do you see as you move around the miami area . What kind of debris, et cetera, brought down power lines yeah, okay, so in downtown, of course, the power lines are all underground. So the jw marriott, take that for instance, it stayed up and running throughout the storm they never lost power. It was sort of the island in the sea. We heard that on brickell key, they never lost power. The residents who live there but you see a lot of wind damage the big trees that have just been uprooted. Of course their roots dont go all that deep if theyre city trees so they got blown over the stop lights are still spotty traffic is having to make cautious moves through intersections when the stop lights dont work. And then you can see water marks on many of these businesses where the storm surge came in. But its out and so they can go in for cleanup today. Powers the big issue there, tyler. All right, contessa, thanks very much. We appreciate it so getting supplies in and out of florida going to be a major challenge when you hear all those ports are closed diana olick is live at home depot atlanta. Theyve been working day and night through irma now ill take you through this as quickly as i can this is the vendor center. This is talking to vendors saying, okay, we need generator it is, batteries, chain saws moving into the next room, this is the cross function room theyre dealing with store closures hr, where are their employee, how are they going to get employees paid, especially in houston where a lot of their employees were displaced now well move quickly through this into the third room here. This is supply chain so now we have the product how do we get it there these folks are all dealing with that im going to talk with Steve Robinson for a second here you had the duracell batteries what are you doing really just recording shipments from our vendors to our stores, throughout our distribution network. That means getting batteries from ohio to florida or alabama to florida or wherever its as simple as that. Wherever we can get them from. How long you been working here boy, about three or four weeks now. Three or four weeks straight. Good work, keep going. Moving into our last room here you talk about supply chain. Once you get the supply chain through, what do you do, you have to put it on the truck and get it there, and thats not easy Hurricane Force wind, even Tropical Storm there are eight different Trucking Companies in this room alone. Theyre talking to all the different, getting supplies through. One thing to note is the carriers are not allowed to carry anything, send the trucks out, unless winds are less than 39 Miles Per Hour. I dont know if you can see out the windows over there, but the storm is coming into atlanta right now and the winds were picking up pretty steadily so these are trucks lined up waiting to take products to florida. Still taking stuff to houston. Theyre going to have to wait and see if they can get through the winds if they come through atlanta. All right, thanks very much the city expected to get absolutely hammered by irma. The storm surge was supposed to put the city maybe most of it under water. Thankfully, they were spared from the most dire predictions but today, a majority of tampas residents are without power. There is still quite a bit to clean up to put it mildly were now joined by bob buckhorn he is the mayor of tampa, florida. Mayor, welcome, thank you for joining us today describe what the scene is like in tampa right now well, thanks, tyler, for having me. When the sun came up this morning, it was a good day because considering what we were facing, this could have been a vastly different scenario both physically and otherwise we got out about 3 00 in the morning last night when the winds died down. When our Police Officers and firefighters were out there literally going street by street to give us an indication of how bad it was fortunately, it turned out that it wasnt that bad we have trees down we have debris in the road but our crews are already out there, getting the debris off the street weve got a whole squad out there with chain saws cutting up trees and removing them. The surge that we feared the most never materialized. And so flooding was minimal at best and so id say we walked away with a victory on this one it could have been really, really bad, tyler. Sure. Certainly, it was a victory. Although there is much damage. Mayor buck horn, in terms of the worst Case Scenario you had in your mind, what was that based on your a segments you did last night, 3 00 a. M. In the morning, what do you think is the daniel now the worst case is naples and marco island with this gust pushing all that water into downtown tampa and into lowlying areas. I think it would have devastated our city, unlike anything we had ever been through. Fortunately, the gods were smiling and that didnt happen what we are doing now is in recovery mode. There are a lot of people who are without power. I know the Power Companies are massing right now to correct that so there will be some who will not have power for a couple days but i think by the end of the week, this city will be back to where it was and, you know, that amazing story, tyler, that i told you a few months ago when jeff and i came to visit you, we will be back on track in not too distant order. Hey, its Michelle Carrera ka brew sa. What a pleasant surprise. Yes, we knew each other when i worked in tampa. Any lessons to be learned . You think, you know what, for future hurricane, we should do abc, xyz we learn every time theres a hurricane. Whether its one were involved in or whether its harvey or katri katrina. We study it. We tabletop it we add to our playbook we take away things we saw that didnt work. We learned some of those things this past four days. There were parts of our plan that i think needed correcting there were things that needed to be supplemented. But i was very comfortable that had we been hit, all of this work thats gone on for a decade here in spite of not having a major hit would have paid off. We were ready. We were deployed we had the assets in place we were firing on all cylinders. We needed to because this is when our community needed us the most michelle, you know, this is a lowlying area if we did take a direct hit, it would be a real problem. Whats the biggest challenge to getting the city back up and operating . Is it getting gasoline to the gas stations is it getting power restored is it getting people returned . What is it its power. Plain and simple, its power well have the streets cleaned over the next day or two i lifted the curfew. Families are back in their houses we know how miserable this place can be for one day without air conditioning you go two, three, four days and its not going to be very pleasant so getting that power restored i think is going to be critical. City hall is open tomorrow i think most businesses will be open tomorrow. My kids are very thankful the schools are not open tomorrow. But the rest of us will be hard at it. Once the power comes back on, were good to go. What about the port the port, i havent gotten a report from the port today i dont think they sustained any damage so i think theyre going to be open for business. Tyler, thats critical because the fuel that comes into port tampa bay supplies both orlando and the tampa International Airport, not to mention a lot of the fuel gasoline stationed along the i4 corridor. All right, mayor, thank you were relieved on your behalf that the city fared as well as it did mayor bob buck horn of tampa. We got a news alert in the bond market. 3year notes up for auction. Rick san teleis tracking all the action this auction did not go particularly well but it wasnt off that much. Cminus is the grade i gave it the yield of the 3year note, 1. 433. The downside of this is, the high yield and the one issue market was 1. 43 so priced a little high. High yield, low price, that isnt a good thing 2. 70 bid to cover below the 2. 82 option average indirect, 42 . Weakest since christmas of 2016. Yet direct with an 8 10 auction average popped over 10 thats since july 2016 dealers took 44. 24 considering we had a concession today, meaning yields are higher, many are surprised that we didnt see a bit more aggressive demand, maybe that means these yields for a variety of reasons arent going to be going down as slowly and consistently as they may have been in the last several weeks michelle, back to you. Well be watching for that, thank you, rick. Hurricane irma still pounding northern florida now flooding in jacksonville, a major concern. Millions still without power across the state and millions in texas are still cleaning up after harvey how does fema get help to all ige people who need it rht the agencys former director joins us next on power lunch. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Take a look at these new images just in nbc news flew with miamidade fire rescue capturing some of the first aerial shots of key largo florida in the aftermath of Hurricane Irma. Homes and businesses completely flattened along the coast. Much of the florida keys only accessible by air at this hour because of all the debris in the water, the areas too dangerous to access by boat. The military will fly c130 cargo planes to the keys with supplies later today lets bring in john, the former director of fema for southeastern florida we have 6 millionplus without power in florida youve just seen the devastation of the keys. Add to that the ongoing recovery effort in texas from Hurricane Harvey and then the u. S. Virgin islands and puerto rico. The massive rebuild going on there. How is fema going to be able to handle this . How long will it take . How much will it cost . Michelle, its probably going to take some time. The categorization has to take place on an ongoing basis. You have to look at immediate needs. You have to look at getting hospitals back up and running. You have to look at facilities that care for the elderly for the people with various types of afflictions. As well as the people who have been made homeless so its just a huge array of needs. And its a its almost a triage process its a prioritization process. Whos going to need help first whos going to need help second. And you try to work your way through that although your priorities, because of the realities of what youre seeing, are constantly changing. Any estimates on cost at this point and how does it compare to what you saw in the past i dont have any estimates on cost i know that i have seen disasters that cost into the many billions of dollars we know that just the response, the cleanup and the recovery after Hurricane Harvey alone is going to be into the billions of dollars. We know that the damage that was done down in the u. S. Virgin islands and in puerto rico is going to be billions of dollars. And then you add to that whats been doing in florida and what may happen in the state of georgia. And you have staggering numbers. And we wont know for a little while what those final numbers are going to be because the Tropical Storm is still in progress so were going to have to wait and make sure that we do adequate Damage Assessment so we really know. No guesses we want to do the Damage Assessment so we know where the resources need to go, and then well figure out what its going to cost. I was speaking to a business person down there over the weekend. Who had gotten out and his contacts there say the humanitarian issues are extraordinarily severe that people are walking around, you know, they dont know where to go what to do and he was plaintively saying get the military to go in there with food drops, water, law enforcement. Because theres massive looting. As people are desperate for food and the basics how do you deal with the problems of a territory like that that is much more difficult to get to then some of the areas on the mainland . What you try to do is set up staging areas. Where you can move resources, move military personnel, as you need them. Close but not actually within the disaster area itself so it doesnt take as long to actually get them into the disaster area. I dont know how much of that was done im sure some of it was done but logistically, youre going to face all kinds of difficulties because youre talking about island economies youre talking about island groupings of people. That are going to be just more difficult to get to than to run truck convoys. So from an air logistics point of view. From a moving of supplies in, its going to be a huge challenge. So good to have you on. Thank you so much for joining us today. Thank you Hurricane Irma pounding miami. A second major u. S. City hit by a hurricane. What will that do to the u. S. Economy . Stocks are in rally mode today just points off of i intraday highs. Weve got these big gains when ow lchcoins. Perun ntue she cant become a guitar legend just by playing air guitar. 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Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. And i am a senior Public Safety my namspecialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Heres your cnbc news update for this hour. Dozens of people had to be evacuated from a Riviera Beach florida apartment complex after the roof blew off. It happened sunday evening as Hurricane Irma roared through. Police used an armored s. W. A. T. Vehicle to move residents to safety swiss Authorities Say they dont yet know why a locomotive slammed into a string of Passenger Rail cars this morning injuries 27 People Police and medical teams responded to the accident where they found five passenger cars impacted a u. S. Air force fighter wing has taken over responsibility for keeping an eye on Russian Military activity near the lithuanian border the f15c fighter bombers took over from the polish fighters that were based in that country. On the 16th anniversary of the 9 11 a tacks, people came to ground zero today to pay tribute to those who died. Site where the World Trade Center once stood is now home to a memorial to the nearly 3,000 people who were killed on that fateful day. That is the news update this hour michelle, back to you. All right, thanks very much, sue. Two huge hurricane canes hitting two of the biggest states in the country in less than a month what kind of impact will that have on the economy . Steve has been taking a look. Were getting some initial estimates of the potential costs. They speak to vast devastation despite what looks to be a better than expected outcome from irma. Heres what we got from moodys analytics. Theyre still working on it, very preliminary harvey they estimated 86 billion. Irma, 64 billion to 92 billion. If that number looks familiar, its around what katrina on its own perhaps caused in terms of property damage. Inside those numbers, some 20 billion of lost economic output from idle hotels, people who cant go to work, theme park, power outages. Shaved the Third Quarter gdp forecast to 2. 5 but expects a reconstruction rebound in the Fourth Quarter that depends on the timing of insurance payments and government aid and even the ability to find enough construction workers and materials to rebuild the state here are some florida economic facts. It is the fourth largest state ranked by gdp. It is the 27th in the u. S. You might say for every truhston howell, with a yacht, theres a gilligan with a skiff out there. And here are some of the economic facts the Big Industries trade transportation, professional service, education, leisure and hospitality, the Tourism Business, huge down in florida. Most of these storms obviously have lasting impackets on lives but do not have lasting impacts on the National Accounts in the case of harvey, a lot depends on getting the refineries up and running. For irma, a matter of getting the lights back on, the streets cleared and the airports open up and down and across the nations fourth largest state. In the wake of katrina, there was discussion about whether or not the fed should not raise rates or cut rates to help the economy. Ultimately the decision was the feds tools dont actually help you recover. They dont reopen the streets. They dont get the power running. Their tools actually dont necessarily help what needs to be fixed they do not however, in this case, the Fourth Quarter or december rate hike was already a close call. It was a close call because there wasnt inflation because there was concern about maybe there was some weakening in the economy. And what bill dudley said to me is what i have to go on. He said to me on friday, its something that could create some uncertainty as to whether or not we ought to raise rates in december or do that third rate hike this year its not, it would appear, stopping the fed from their plans to reduce the balance in september. Got it, thank you, steve. Steve, thank you. Huge market rally now as the markets do seem relieved that irma wasnt as bad as feared and that North Carolina didnt fire any missiles over the weekend. Thats a big exhale. Lets go to bob pisoni at the new york stock exchange. Those with the two main factors but there are some other proly of ral factors its a big one 41 advancing the declining stocks lets look at the major issues lets fall out from irma, absent north koreas weapons test bond yields are up today theres talk about the u. S. Tempering those u. N. Sanctions resolution, regarding north korea. Not quite as honor russ as thought. Also a possible factor remember what steve was talking about, the economic impacts. Another factor is the fallout from harvey and irma could shift the focus in washington away from taxes and towards fiscal spending that would be beneficial to the stock market as well a number of factors helping things out overall here. 41 advancing the declining stocks bank, tech, semi, Energy Stocks are also starting to rally they started rallying in the early db ju just after the ra. Its been an awful couple of weeks for the banks as bond yields being down have really hurt them. Today, the yields are back up. Most of the bank stocks are up 2 new high, not that many on the dow end of things. Theres about 200 on the nyst. Procter gamble, mcdonalds i mentioned Energy Stocks started rallying just after the open there was talk from the Saudi Oil Minister saying hes had some discussions with his peers that production stockings. Finally, the s p 500 didnt drop that much all during last week when we were concerned about the effects of irma. But on the day when the impact of irma hasnt been as big as expected, the markets rallied huge today thats another sign of the overall resilience of this market that does not want to go down. Lets get more on todays market rally the Portfolio Manager with Alliance Global investors. The managing director and partner with ibm Financial Group at hightower burn, bob mentioned something very important, the s p 500 has been very resilresilient were three points below our record intraday high do you think this is in terms of where we are in valuation, given some of the head winds were facing this month alone, with the fed winding down its balance sheet, with the Central Banks around the world potentially tapering off stimulus . With a lot of things in the hopper here . I think a lot of what were finding out today is the stock market, it reminds me a little bit of raising a young child thats that happiness is really more than anything a function of outcomes over expectations the fact that, you know, clearly the storm, you know, you cant measure the human cost but at the same time, the fact that it looks like the cost will come in far lower than expected. But there are also some other factors that havent necessarily been discussed such as you had the debt ceiling talks get pushed into the future as well as that because of having backtoback storm, the bond markets are now pricing in a lower likelihood of Interest Rate increases later on this year so all of these factors are really i think sort of reversed. Theres been a risk offtrade in the last few days. Youve seen a little bit more of a risk on trade. Typically within storm, the markets tend to be resiliencrese i think you need to focus on the rotation from the winners to the losers within this type of market. Ron, what kind of rotation are you expecting in this sort of market . A lot of people had been saying, you know what, the baton should be passed at this point from a group Like Technology to maybe financials or another sort of more Secular Group im just curious what do you see. So were overweight technology were overweight but slightly overweight financials. Interest rates will be higher at some point technology, thats the future. I think you just got to go with it and you got to stay with it last year, you didnt like being in technology. Everybody wanted to be in campbells soup okay, that wasnt the trade. The trade was to stick with the technology, you know, things that are moving the world forward. When you say Interest Rates will be higher eventually, is that sort of a concession that financials have really been a yield curve trade this year, despite what everybody can say about fundamentals and the Business Case for the financials, that really, it is the yield curve. Yes, i think the overriding issue is that all the major sectors of the globe are growing all at once. There hasnt been this kind of sink kristi in probably eight or ten years. So youre going to have Global Growth with Global Growth will come global profits and better employment thats the longterm view. What to you do in the short term we dont play Interest Rates going up or down we kind of thing Interest Rates will slowly go up. Thats only because the world economys doing well thus more consumers, more borrowing, more middle class we think the worlds in pretty good shape if it just keeps growing albeit at a slow pace. Burns, are you solely invested in the United States or the world as more talk about Global Growth . Again, we actually have funds in the u. S. As well as outside the United States. But when i just think about my own personal investments, i actually have been shifting a slightly greater degree of that outside the United States. A lot of that is really a function of valuations the u. S. Stock market right now is one of the more expensive ones in the world. It may be attractive relative to bond prices and yields nonetheless you get as of today you get better growth in europe even better growth in japan. And likewise better valuations there. Likewise, you know, even the emerging markets are look being certainly attractive relative to the United States on both a growth basis as well as a lot of these areas have really cleaned up their Balance Sheets in the past several years all right, were going to leave it there, guy, thank you as you can imagine, logistics a major headache right now. Gasoline shortages are causing chaos. Look at these lines. How are supplies and fuel going to get into the areas that need them the most . Well take a closer look next. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. So you can get business done. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. So let me get this straight. Youre a rabbit . Im vern, the orange money retirement rabbit, from voya. Riiight. And that means. . Im the money you save for retirement. I help you get organized so your money could multiply. See . Got it. Whos he . Hes green money for spending today. You know, paying bills, maybe a little online shopping. Makes it easy to tell you apart. That, and i am better looking. I heard that. When its time to get organized for retirement, its time to get voya. The convenience store, by the way, saw 80 of our nations yield. Jeff, great to have you with us. Thank you give us a status update as to whether or not there are shortages and whether or not there are big challenges getting gas where it needs to be. Hurricane harvey was all about disrupting the supply. We had 25 of our Refining Capacity offline we still have about 10 off. With irma, its really more about distribution and demand. We had an enormous exodus, one of the largest evacuations ever. They have to come back florida is unique in that it is supplied by largely barges barges bring product from offshore and those barges stayed away because of concerns over the hurricane. Most of what we hear right now is it doesnt appear that any of those ports outside of jacksonville have suffered anything significant so were going to have some assessments. Make sure the foports are fine fuel will come in fairly rapidly. At the same time, we have to look at the truckers, that also the trucks that are bringing the product in, how do you clear those roads, how do you get the product there, fill up those stations if theres any good news, is that in a lot of cases, the high demand on the way out or the way further up north may allow people not to have to buy fuel for a few more days. So that might give us a little bit of a break. Once the fuel is at the station, jeff, the challenge right now, we were just talking to the mayor of tampa, is that theres no power stations in florida now, and correct me if im wrong, are they mandated to have a generator to pump fuel in some places, that is the case the challenge is still how do you clear those roads and how do you get the fuel to there . And then its just a matter of just executing and if you have power, running, communicating, that you have power and just getting people back to normal operations how do you know do you know how many of your members down in florida are back up and running and have power so that theyre frozen goods and other perishable items arent lost, number one number two, that they can do business, process payments, sell gasoline and so forth . What do you know well, right now, we just hear from various areas of the country. The governor set up a great series of calls with our industry and other industries. Talk once a day. The communication has been tremendous the cooperation has been tremendous thats really helpful because this is a little bit difficult with how florida gets product and that the storm is exiting at the north where its a little bit more difficult to bring help in if it was going the other direction, there would probably already be relief coming in. So its just another dynamic of the storm. To follow up on tylers question, are you where you sit able to say what percentage of stations do have gas or dont have gas or do have power or dont have power theres really no broad good assessment of that even if you do have gas, with normal demand, you go through about a thousand gallons an hour any store fully supplied could be no longer supplied in about eight hours. Some of those estimates you may have various ways to look at it. Its just going to take a while to get a full assessment of how many do have power, how many do have fuel and how it has returned to normal. Can you tell us a time frame on logistics lets say the barge pulls in then offloaded to trucks. How many days, hours, i dont know what the metric is, when the port reopens, the barge pulls in, to getting it into somebodys car barges within 24 hours will be coming in and theyre millions of gallons so thats immediately relief theres some internal pop lines in florida that can move product a little bit then it goes to terminals. It goes to trucks. It wont be a long process a lot of these trucks have already prepositioned themselves so they can act after the hurricane has passed and its safe and so theyll be ready to go. Its a matter of getting the people, getting the truck, getting the fuel and moving things forward maybe with some escorts to go around areas that are difficult. It will happen pretty quickly. Jeff, thanks a lot, jeff leonard. Thank you counting down to apple gearing up to unveil its newest gadget brian getting ready for the big event. Hes all the way in San Francisco. We came all the way out west because it is supposed to be evolutionary will the next phone, will the next this thing cost you over 1,000 how fast will it be . How good will the camera be . Is that home button gone away . More importantly what could move maybe most important stock in the entire market. Theres a lot of preview stuff coming up for apple right after the short break. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. Livestreat the airport. E sport binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv on every screen is awesome. The Xfinity Stream app. All your tv at home. The most on demand your entire dvr. Top networks. And live sports on the go. Included with xfinity tv. Xfinity, the future of awesome. Welcome back im Brian Sullivan at cnbcs one market here in San Francisco we are previewing tomorrows big apple event. Apple expected to unveil not one, not two but maybe three new iphones a lot of leaks but a lot of questions still. Lets get a preview of what to expect we got ron hall, jpmorgan, editor of cnet it matters to our audience they want to know what might move the stock what would you hear tomorrow that may have you raise your estimates and prices there are two things. There is first the price we think of 1,100 that would make a difference of the earning models and stock price. The availability is what we equal that to be available that makes a few unit all the difference if they say oh, it is going to launch in november, okay, you can buy it thats bad thats a negative surprise. Most people expected to deliver sometimes in mid october do any of the features matter to you or you care just about price . If you are not growing units as quickly, you need to grow the price. We want it to look good and some of the features like the 3d feature recognition, it is important that consumers react well to the device scott, one thing that seems more interesting and not to knock other events but what makes this one a little different than the past few is we could see leaks have said, this could be a totally different phone of the way it looks and the home screen button can be gone. Do you anticipate a r revolutionary event . A lot of people are throwing out new idea and things like essential phones a larger screen, is that new a lot of other phone haves dos that no home button, they have experienced that first off, it is going to be great to see tomorrow. Question know more of the phone than headquarter what are you hearing in your reporting of what we may see tomorrow so, you are right, apple is expected to unveil new products tomorrow it is going to produce the public of this new corporate campus which you can see right behind me here the campus directly does reflect steve jobs tomorrow the event is actually going to occur in the new steve jobs theater that includes a thousand people so well be looking forward to that. Josh lip tton certainly wel see you tomorrow we are cnbc so we care about the market cap and the stock move, do you think what we are going to see tomorrow of the phone and their most important product by far, is it going to be enough to compel people to sit on an iphones 5 or 6 to upgrade and shell out 800 or 8,0 8,000 bucks. You can put a lot of money for it and theyll hedge the bets by having other phones, iphone 8 or whatever it is called or iphone x i dont know if it will make people to go for the top end phone. The new and exciting things thats happening with their phones where we are seeing reputation how many people could get that, may create the feeling that you want to be on board and ar is available on a lot of the phones and whether that and those kind of funky apps we are seeing online maybe become a hook you hear iphone expo and iphone, we dont know if it is going to be the iphone 8 or x. It could be both or ten year additions. Thats why you are hearing those two terms thrown around. The three months leading up to a launch event and flat historically to three months after. Apple is up 8 over the last 90 days s p 500 of 5 . Do you expect what well hear tomorrow the out performance and the alpha continue what we hear tomorrow will not drive much of that over the period of the fall as it gains tractions of consumer, the stock will track that so well think it will perform at the end of the year. You think so yes. You and i spoke about it comparing to cars. The average cars is 11yearold. You will have to replace, are we getting to a point where a lot of people having phones that you are going to simply. The plugs does not fit anymore. We dont support that. Do you think it will force the upgrade cycle . I dont know it will force it but there is a billion people having iphones today it does not take those upgrades moving the units on machines i dont think so, people dont appreciate how old based iphone use is you produce a good phone here, you will see a lot of upgrade demand all right, josh lipton, i heard you will be sleeping out there tonight. I cannot confirm that. If you are, try to get us details on what we can see do you think we can be surprise by a new tv product . Maybe the apple watch three. There is some speculations, josh, that we may get the preview of a watch that does not need a phone to work, e sims is what it is called. Maybe the dick traceys watch may arrive we are not just speaking of phones brian going for a fun and he can get texts with notifications i heard you guys mentioning a lot of expected features it is interesting to see some of the survey work. What do people want to see i was talking to ben at Creative Strategies and smart tech analysts for the watch, apple for a long time. The three things that they found consumers really want to see an improved camera, wireless cha e charging josh lipton, im see you tomorrow, have your limo pick me up tomorrow. Now, we are talking about basically a super computer that by the way happens to make phone calls and texts in your hand it really is. It is a computer in your pocket. Well look forward tomorrow, well see you then or not sooner irma is leaving a trail of destruction in its path. The storm is slamming floridas real estate. How bad could the damage be . Well take you live to miami and the insurers, theyre rallying big today. None the less, those insurers are still facing some loesss the fallout of the second hour of power lunch, thats nextment and her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Welcome everybody, the second hour of power lunch, i am tyler well talk to florida about what it will take to turn the lights back on. The real estate rebuild of hotels and malls and residential buildings and across parts of the bahamas is really slammed, whats the damage and how long should the rebiuild takes what it could mean for sales and prices ahead after irma. Power lunch part 2 starts now. Lets get a check in the market we are in rally mode down with the s p 500 having the best day since march. Irma damage was not as bad as helping. Right now we got the dow and creating 22,000, 61 up by 1. 2 and nasdaq is up by 5 financial is being helped by the big surge we are seeing. As for some of your top, teteva teva pharma and regenron and take a look at equifax of its share falling. The stock is down at 8. 3 right now. Lets head back to Brian Sullivan in San Francisco with a look of what hes got coming up. Actually, well check with him later. I am Michelle Caruso cabrera. Hurricane is moving into eastern alabama tomorrow winds have decreased to 55 Miles Per Hour it is ligkely to become tropica storm. More than 1,000 in the dark in georgia, no deaths in florida were linked to the storm Pretty Amazing stuff we have this dramatic video just into the newsroom from Jacksonville Florida the water is steep and moving fast in the apartment billinuil. These residents are determined to rescue their cat before making their way to safety the mayor of jacksonville urged people to not already evacuated to do so high tides are expected to be six feet above normal. I hope the woman is okay. We have live coverage of hurricane, Contessa Brewer is live in miami. Jack Jackie Deangelis is in palm beach with a look of the damages and the impact on commodities and Morgan Brennan is right her of how costly these two hurricanes could be for insurers contessa, you first reporter we are out here on this Beautiful Day those of the coast were put in place of hurricane andrew and the proof was in the pudding right behind me never lost power and the damage is minimal. The storm squirted to the west they did not take a direct hit the residents living there are pleased with the way their on play held up place held up during the storm take brickel, the population tripled since 2,000. What is becoming the populous neighborhood in downtown miami theres a 1. 5 billion mixed use project. What they are dealing with is the after math storm surge and a lot of debris that came down and tower thats under construction is dropping debris during the hooi height of the storm. The locals say hey, thats nothing, this neighborhood floods when there is just typical everyday rain that comes through. The infrastructure itself needs to have some attention from the city and thats growing too fast and too big and too quickly. We saw the cranes on the construction building. How quickly can they get the work crew into clear it out. Whats in store and they have to factor in rising seeds and continually growing population here lets head to Jackie Deangelis, how long it could be for power to be restored reporter for those who are not dealing with lifethreatening situation or massive flooding many residents in florida are wondering when the power are going to be restored more than 6 Million People lost power in the storm here in palm beach county, more than 70 are currently without power. Thats one of the issues as crews are getting back on the ground you have a large Elderly Population here as well. Theyll need electricity and airconditioning it is hot on the ground here. There are three major ports in florida that i thibrings gasoli hin. They are transported from terminals and onto trucks. What happens is the terminals themselves have to get power back so they can transfer supplies onto the trucktrucks right now we are looking at gasoline at west palm beach, about 56 of the stations dont have supplies. In miami in fort lauderdale, the number is 52 . These supplies are going to be an issue as people are scrambling around different cities trying to get back to where they need to be. Guys, back to you. Jackie, thank you very much six Million People as we mentioned a moment ago are without power in florida Hurricane Irma continues to move along, when can people expect to get electricity back joining us is rob ghoul, the company has about 5 million customers in florida rob, welcome, i should point out to our viewers there is a bit of a satellite and audio delay here bear with us you have 5 million customers in florida, what percentage of them lost power and how many have you been able to restore power too so far and whats the outlook for those that you have not gotten back online well, instead of percentage, just giving you raw numbers. We are looking at 3. 5 million customers who are without power. We serve nearly 5 million customers. As far as restoring power, we invested over 3 billion and nearly 3 billion over the past ten years and in that time, we are talking about creating what we believe the smartest grid in america, we have been able to es we have been able to restore 1. 5 milli 1. 5 million outages. While we are not out physically in the storm to restore power, we have an army of workers that are restoring power today and they were prepositioning those workers are out there. That was largely due to automation all of the investments that we have made during the past decade allowing us to be able to automatically reroute power and keeping people in services as much as we can at the oendend of the day, wel continue to work hard and restore ours it is going to be a long hall, there is no doubt about that one. Thats fascinate thag ting te state of automation, you dont have to have people boost on the ground you can do it sort of robotically. How long before the bulk of those 3. 5 million customers will be back online how long on average and what is the outside mark, in other words, the worse that people could expect it is too premature, thats what our customers want to know, how long will it take to get the lights back on jacksonville and the northern part of our territory, we dont serve jacksonville proper but we do serve Saint Augustine and daytona beach. The storm is still upon us right now. We are out there on miamidade and we are restoring today, at the same time in parallel, we are assessing with damage. On the west coast of the same thing and the problem that well find, i believe that on the east coast it will be more of a traditional restoration, it will be several days or perhaps weeks. When you look at the west coast, that could be a whole entire rebill, that r rebuild. Thats the potential for weeks this is not a typical restoration that well see the first time in our Company History have our entire 27 square miles and 35 county territory under assault by irma. Rob, thank you very much and good luck to you and your crews and those crews coming in from neighb neighboring and plumb state as well many are predicting the industry losses will be in the ten of billions. Irma and harvey combined could total to 60 or 70 billion those are big numbers for the Insurance Industry still, not as bad as 125 billion and others were projecting as the worst case snare joe ahe scenario ahead of irma thats why the kie insurance is rallying over 2 right now and it is why insurers having floridas exposure are leading the game there is. Names like travelers are under a lot of commercial coverage and florida and texas also reinsures. You can see all of these stocks are in the green today while irma wont completely wipe out profits or capitols for the industry, it is important to not lose site how devastating both of these have been it is going to put it in the company of katrina which is the most costly today of 50 billion. Insurance adjusted as well as andrew and sandy. Based on the numbers that we are getting from harvey as well, thatll be in the top five power lunch exclusive with kate snow allan cold bber. Hey there, good afternoon what happens as you are helpi helping everyone we began mobilizing on thursday and we close our florida operation in miami and tampa and we rerouted our teams through a secure locations and now they are back on the ground and in florida, we are still on the ground in texas dealing with the after math of Hurricane Harvey as you said, our thoughts are with our policyholders and employees who have suffered devastating losses themselves and all the people affected by the hurricanes we supplement that with third party adjusters. We are committed to getting every claim resolved quickly if you are affected by harvey or irma, there are detailed instructions of how to get your addre claim quickly. Before the storm, the estimate was 125 billion in short losses and now it comes down to 30 billion or 40 billion. You must be breathing a sigh of relief that it was not worst i am happy that people affected was not as bad we expect to have a lost of reif he thinks of 127 million we dont think well come here the top of exposure of 1. 1 billion it is early to have definitive answers. We modelled it and wind speed. We do feel it is in the bound of what we are expecting now. Up next, dirma impacted on real estate. Brian, what are you getting yes, well be coming up after the break, talking about the io mark it ipo market, will it cakickof . We are the hottest single space to invest right now and a lot more to do here as our coverage continues on power lunch, well be right back after this , malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Jeffery, he joins us on the phone, welcome to power lunch. What does it say of your development at this point . Well, it is a lot better than i could. A couple of days ago, it was mostly landscape and debris on the street and nothing catastrophic Certain Properties are opening tomorrow in the terms of the First Property thats opening and the one you anticipate tomorrow, giver us some idea miami beach is not letting any employees to miami beach until tomorrow at noon they have to clean the streets and get the roads ready and well be open tomorrow at 5 00 we are a full capacity so thats good news. Our other property, our resoertw we have a gas line that was uprooted by a tree after massive hits like this in terms of hurricanes, i am curious in terms of trying to develop these properties and selling these properties, are people much more reluctant to buy in florida after a big hurricane like this. One tower is built in 1954 so it held up pretty well the newer ones are to the coast. I think it is pretty predictable of these kinds of storms do happen in the south eastern part of the United States and the panhandle texas and caribbean. You know what it mean, it is the way of life. It does not happen often and the reality, florida is prepared for this you are not worried of prices and leading to higher hurricane costs and acting like a tax and prices the more you have, they raise insurance. I am sure our insurance cost will go up and a lot of the times these storms do happen, you know there is a lot of second homes in south florida and miami, most of the seasonal people are not there anyway so not as bad as it could have been did you have, jeffery, any guests staying through the storm or did you evacuate or turn down completely we were told to evacuate. We only had security and employees there. No guests all right, jeff, well leave it there thanks for calling in. Jeffery soffer, turnberry. Ahead, how do Grocery Stores restock . Well hear how the company is dealing with the after math. beeping were on to you, diabetes. Times up, insufficient prenatal care. And administrative paperwork, your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you too. At optum, were partnering across the Health System to tackle its biggest challenges. At optum, were partnering across the Health System whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley people dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. Hello everyone, i am sue herrera, here is your cnbc update at this hour. Jacksonville is experiencing flooding as irma makes its way north. The citys mayor is warning residents to evacuate if they have not left already. I want to remind people that we ask folks to start evacuating on wednesday, ab low lining areas. We now need you to heed your warnings as we are expressing whats coming. Ocean water is pushed on shore from Tropical Storm irma dozens of streets near the water and that city were flooded the water levels were more than 9 feet at high tides thats nearly the same level at Hurricane Matthew which hits last october u. S. Naval forces marking the 16th anniversary of 9 11 nearly 3,000 people were killed on that day in the separate attack the attack followed by afghanistan and iraq thats the new update at this hour michelle, i will send it back to you. There is a big market rally under way. Bob with all the reasons why bob. 41 the s p will close at a new high i think everyone agrees that while the damage, it was extensive. It was not catastrophic. That was the main factor in the rally but not the only one we have nothing out of north korea at this time because of all the and then you saw the dollar rally, you saw treasures coming under some pressure therefore, you can feel it early this morning when free market tradi trading. So even at this point, expect the same thing happens and look where we are more money available for Hurricane Relief is a big factor it means all of a sudden, you will see less emphasis on fiscal restraint and more spending. Here is the issue with that. They only kick that down the road until december. This whole conversation or the level of society is expected is now kicked to december thats correct. Thats for sure the north korea things, we know we did not emphasize much, there is less sanctions voting tonight. Theyre trying to be diplomatic and trying to get trump to back off. I rather be diplomatic, wante on today, they moved back to the upside they had a lot of the names of insurers got beaten up ahead of both harvey and irma and irma was not as catastrophic. Is it amazing how resilient the market was suddenly, today, less than a little bit and we got a huge rally. Once again, you got fed policy in question, yields are going to remain low, investors need change and need to find out the yield. Of course, plenty of experience, always a pleasure. Thank you, bob, and kenny lets get to our commodity desk, don chu. There is been a concern over demand for oil given theeffect of Hurricane Irma and the lingering effects of Hurricane Harvey the balance shifted more towards the bulls and higher prices. Saudi arabia oil minister met with this opec counter part. Remember under the current agreement of Oil Producing country until march of next year for now the tug of war over less supply of International Sources and translating into wti right around the 48 barrel mark, well see how it goes from here and how they try to get back, tyler, online, back to you dangerous high tides flooding continuing to threaten northern florida. Lets bring in anthony pucker, they have their quarters in jacksonvil jacksonville welcome, what are you experiencing in seeing thanks for having us today. I am talking to you at the wind dixies store support center what is it loo i can outside and what are you hear sing . It is windy and the eye of the storm is further north we have conversations and communications of the store manager twice a day. We got a couple of hundreds of stores that are closed we are reopening as quickly as possible to share our customers. How do you get the goods that those stores need to those stores given the fact that in some cases, there maybe power lines there and gasoline shortages, how do you solve the logistics puzzle we have a worlds supply train and we are trained in these disasters so we know how to get the product to the store. Tell me more about that that does not tell me how you get through the flooding on th street or massive trucks or everybody is going home at the same time. How does that work we are able to monitor our condition, we have our worlds class center thats monitoring all of the roads and where we can get through, well get through obviously, and safety is first. If it is not possible, well have to wait how big of a challenge anthony is getting the personnel back, i would imagine that some of your employees have evacuated and are not anywhere near the store location our associates with our greatest assets and we put them first along with safety of our mission. If they can get back to the stores, thats fantastic we have a heroic story kenny did not need to leave. Kenny is a hero, he saves peoples lives and there is no question about it. Did you lose any stores or any sustained or irreplaceable or serious damage . We had roofs coming off or serious damage there is nothing thats irreplaceable. We opened a cocoa beach store after Hurricane Matthew six months later thats the longest time that well take thats a significant damage and roofs coming off especially of florida out of the keys. Antho anthony huckle, thank you very much thank you and now puerto rico is helping americans stranded in the caribbean. Joining us on this news line is ricciar ricciardo, the governor of mexico, thank you for being here thank you, michelle give us the status of portfolio. We felt the brunt of irma on the North Eastern island it was you know the results were due to prep paarationpreparatios we have 460 shelters ready and of course, our infrastructure, particularly the infrastructure took the biggest hit, we are working on that as you mentioned over 600,000 people that did not have electricity in the event now are doing, we are working towards getting that to a higher number it could have been much worst for puerto rico based on where they initially thought where the storm is going to be the u. S. Virgin islands and other areas of the caribbean were hit hard and decimated. What puerto rico is doing to help rescue people who are stuck out there. We recognize thatll go and we felt hit and there is been major damage we also recognize some of the islands felt bigger impact we want to make sure we help all u. S. Citizens and anybody that have been stranded on those islands. We are offering shelters for puerto rico so we can get transportation for u. S. Citizens to be transferred over here and those living in the states, making sure they have a safe passage back home. So in the past 48 hours, we have gotten about 2,000 u. S. Citizens here on the island we have them on shelters or hotel rooms. We are working the logistics to make them go back safely home. What do you think of the potential impact of the puerto rican economy and especially of tourism and wealth for some time now. The tourism structure is very robust here. We are lucky it is well designed so from that perspective, puerto rico still have a way of being a Tourist Destination where we are working to fix it they have been working hand in hand to the event and after the event. Thanks for that coordination and collaborations and preparations. We are not only moving forward but also help our other u. S. Citizens thats been great, the response tell me puerto ricos financial problems are very, very well known, how are you going pay for all this well, some of it, we have an Emergency Fund here in puerto rico but some of the president signed of the what happens in florida which allows us to get reimbursed for all the preparations and some of the mitigations of all of the damage some of the regions of puerto rico have already been determined to be a disaster area so well work with our funding but with the help of fema and balances and to rebuild puerto rico all right, governor, thanks so much for taking your time thank you, one last thing, we are aware of whats going on in florida. We want to make everybody a note that well be helping out the effort of florida and thats where the United States were needed thank you lets get back to brian in San Francisco, whats coming up . All right, melissa, thank you, a lot of serious stuff is going on with the southeast and texas as well. Thoughts are with them there is news outside o f the storm. Coming up, well talk about the ipo market, we are starting to see some sign of life, will it take back off or blue apron effect well talk about the hothetest investment place right now thats right after the break from power lunch from San Francisco. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back to power lunch. Lets talk about the lack of ipo market have the blue aprons and snap of the world Hurt Technology . Cheryl is joining us now. Blue apron, have it provided a cooling off of the ipos market at all it has given people some pause. People need to understand that blue apron is a specific type of company and it is not reflective of most Technology Company it is a service thats enables by technology. It is not necessarily a tech company. Whats happening to the ip market it is starting to pick up a little bit of the pipeline lets be clear, you go back a few years way down, is it because the market does not trust ipos and we dont need the Public Market for capitol anymore i think there is a little bit of all of that. In terms of trust, thats the least of all three factors they may no t have been the block buster that we are expecting. Most are trading above their ipo price, theyre just not in their consumer base. I do think the requirements for an ipo have changed over the last several years and not skrus this year where the street is rewarding profitability and over growth everyone. The street expects companies to be profitable or close to profitable when they go public so the economic of the business becomes very important why do we talk so much about an uber which is losing billions going public we still do talk about these unicorns which are massive but yet dont have a profit. It is going to be a raise against scale so if you are big enough then you maybe profitable and even for uber, there are some cities where uber is profitable and some cities where uber is not profitable it is not that the Business Models cannot be profitable for these big unicorns if the street does not believe that they can become profitable in the long run with the scale that they think they can achieve, theyll be punished for that consumer facing companies tend to be more sexier we know what facebook is and we can see it you as a consumer, i get in a car and i know what it is. Is all the real money though going to be made the next couple of gears on the unsexy stuff and the guts and the software that we dont see right, as a consumer. Is that are the hot spot is now. There is so much data that enterprises have to ingest and you need Technology System to be able to address them enterprises will always spend money on technology and theyll spend it in a very calculated way where cio and cto know what they are going to spend and they can move the needle on their businesses they are not sexy. But making money is sexy. Is that where the money is going to be made, do you think what else is hot right now. We are in an in fluctuations point and consumer platform is calcified with apple and google and facebook it is difficult for a young start up to break in those areas. Are they too big . What do you mean . Do they block people entering in to the market yes, it is really hard. It is hard to break in from all the clutters theyre not too big of a standpoint where they fail the first platform sheriift of eight years ago is platform. Well find out well find out. Cheryl cheng i like what cheryl said boring is the new sexy. I got a chance. There is still time of course, to make trades and the trading nation team will have advice on that, next Liberty Mutual stood with me when this guy got a flat tire in the middle of the night. So he got home safe. Yeah, my dad says our insurance doesnt have that. What . . With Liberty Mutuals 24hour roadside assistance, get a jump, tow, and more any time of day. Switch and you could save 782 on home and auto insurance. Call for a free quote today. You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. It is time for trading nation San Francisco style. With the big apple launch tomorrow, why not trade apple . Ari wald of oppenheimer, chad of Washington Crossing advisers, are your trading nation today team all right, chad, you are a Value Fund Manager do you own apple and if so, or if not, what are you going to hear tomorrow thats either going to make you buy more or buy some so, we favor growth over value. We would be buying apple into the news and we think its going to outperform over the course of next three months. Valuations make sense, revenues next year going to grow roughly between 4 to 6 are revenue expectations for 2018 is roughly 240 billion so going into the end of the year, outperformance, one thing i wouldnt caution, though, is that overall, going into next year, after returns, we think, are going to be rather low for apple l. They do have to pick up market share, in particular, on the e. M. Side. We think theyre going to have troubles do that, in particular, because of the price of the apple iphone. So youre not planning to add any more right now, if youre wowed tomorrow by what you see, would you consider it . No. I would just sit with if you own apple, we would be holding apple. We think its going to outperform for the next three months, but overall, we wouldnt go overweight or add to a position if you do have an existing position. Well, ari wald, apple outperformed, up, what, 40 some percent. Far outpacing the s p 500. Do the charts show there are nr gains ahead for apple or is it stalling out the charts do indicate there are more gains for apple the charts are bullish for stocks theyre bullish for large caps theyre bullish for tech sure enough, theyre bullish for apple. Along with these topdown tailwinds, we see apple coming out of this bullish triangle pat e patt pattern, if you will, relative to the s p 500 which does project to additional outperformance over the coming quarters so in terms and levels, nearterm support at 155, we still think the stock gets to 180 which was the projection from the breakout coming into the year overweight apple, we like it all right ari and chad, thank you both very much. For your trading nation, go to tradingnation. Cnbc. Com guys, thats it for me from San Francisco. Tomorrow, life teve team coverae from apple new billion dollar, quote, spaceship headquarters, all day long new iphones, thousand bucks, maybe a new tv product, maybe a surprise in store . Ill show you tomorrow from cupertino, california, and apples new steve jobs theater. Promises to be a huge event thanks, buy quriabrian, well su then check please is next dont move. And now the latest from tradingnation. Cnbc. Com and a word from our sponsor. 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Better than 1 frpk for the dow 1. 1. 2 ditto the nasdaq so forth the market on any given day is a matter of expectations i think over the long term, its directly related to profits and profitability. But today was one of those days where maybe the expectations were very low in terms of what would happen in other words, we might have expected a worst storm than we got in parts of florida, certainly it was worse in the keys it was terrible in the u. S. Virgin islands and the fact that there were no missile tests out of north korea so, maybe expectations exceeded a bit today. Speaking of expectations, there are some expectations now that, perhaps, china will ban gas as well as diesel cars by a certain type this according to reports that have have been out there take a look at shares of tesla theyre surging on the back of this news and take a look at shares of albemarle. It is a lithium play both of them seeing some pops off the back of those reports. Cal main is moving higher midsession after the company put out a press report you might think based on the name they produce food in california and maine but they also have chickens in florida and southeast georgia. The company came out and said no Material Impact on egg production and the stock is moving higher. And tomorrow, a big day for everybody interested in investing, delivering alpha from the city we will be there a real whos who of the best in investing. Closing bell starts now hi, everybody, welcome to the closing bell. Im kelly evans at the new york stock exchange. Im Bill Griffeth big rally for stocks today no weapons test in north korea this weekend, that helped sentiment. Dow component apple powering higher ahead of its big annou e announcement tomorrow. Insurance stocks rally bigtime among others after Hurricane Irmas devastation was not as bad as feared fo